What is an Authorised Company?
The Authorised Company (AC) is a Mauritian legal structure specifically designed for commercial activities conducted exclusively outside Mauritius. Governed by the Financial Services Act 2007, it holds an Authorised Company Licence issued by the Financial Services Commission (FSC).
The AC was introduced as part of the 2019 financial sector reform, replacing the former GBC2 category. It offers a simplified and economical framework for investors who do not need access to Mauritius's tax treaties but wish to benefit from a structure in a well-regulated jurisdiction, compliant with OECD and FATF standards. For a comparison with other offshore jurisdictions, see our dedicated guide.
The AC in brief
An offshore structure exempt from tax (0%) on foreign-source income. No access to tax treaties, but costs cut in half compared with the GBC and accelerated incorporation in 1 to 2 weeks.
Key advantages of the Authorised Company
Total tax exemption on offshore income
The main tax advantage of the AC is complete tax exemption on foreign-source income. Unlike the GBC, which is taxed at approximately 3% effective, the AC pays 0% tax on profits from activities conducted outside Mauritius. For investors seeking tax optimisation in Mauritius, the AC is a particularly attractive option. This exemption applies with no reinvestment condition and no minimum amount requirement.
| Tax item | Rate / Detail |
|---|---|
| Tax on offshore income | 0% |
| Access to tax treaties (DTAs) | No |
| Tax Residency Certificate (TRC) | Not available |
| Capital gains tax | 0% |
| Withholding tax — dividends | 0% |
| Withholding tax — interest | 0% |
| Inheritance tax | 0% |
| Audit obligation | Reduced |
Reduced costs
The AC is significantly more economical than the GBC, both in terms of incorporation and annual maintenance. The total annual budget ranges between USD 1,500 and 3,000, roughly half the cost of a GBC. The absence of a resident directors requirement and lighter compliance obligations considerably reduce operating costs.
Speed of incorporation
With a timeframe of 1 to 2 weeks, the AC is the fastest structure to set up in Mauritius. The FSC's simplified procedure and reduced substance requirements speed up the approval process. This is an advantage for entrepreneurs who need an operational structure quickly.
Management flexibility
- No minimum capital required
- No requirement for resident directors in Mauritius
- 100% foreign shareholding permitted
- Multi-currency accounts (USD, EUR, GBP, etc.)
- Free repatriation of profits with no exchange control restrictions
- Simplified reporting obligations compared with the GBC
AC vs GBC comparison
The choice between AC and GBC is the most important decision when setting up a company in Mauritius. Here is a detailed comparison. For an in-depth analysis, see our GBC or AC: how to choose guide.
| Criterion | Authorised Company | Global Business Company |
|---|---|---|
| Taxation of foreign income | 0% | ~3% (effective) |
| Access to DTAs (40+) | No | Yes |
| Tax Residency Certificate | No | Yes |
| Local activities in Mauritius | Not permitted | Permitted |
| Resident directors | Not required | 2 minimum |
| Economic substance | Reduced | Enhanced |
| Annual audit | Reduced | Mandatory |
| Incorporation time | 1-2 weeks | 2-4 weeks |
| Annual cost | USD 1,500-3,000+ | USD 3,000-6,000+ |
Key point: the 3-percentage-point difference between the GBC (3%) and the AC (0%) may seem modest, but the GBC's access to tax treaties can represent far greater savings in terms of reduced withholding tax on incoming and outgoing flows.
Restrictions and limits of the AC
The AC has certain restrictions that are essential to understand before choosing this structure. Failure to comply with these restrictions can result in sanctions from the FSC.
- No access to tax treaties: the AC cannot benefit from the reduced withholding tax rates provided under Mauritius's DTAs, and cannot obtain a Tax Residency Certificate
- No local activities: all commercial activities must be conducted outside Mauritius
- No transactions with residents: the AC cannot carry out commercial transactions with persons or entities resident in Mauritius
- No real estate in Mauritius: the AC cannot acquire or hold real estate in Mauritian territory
- No regulated financial services without a specific licence: fund management, insurance, and brokerage require additional authorisations from the FSC
Who is the AC suited for?
The Authorised Company is particularly suited to the following profiles:
International trading
Trading companies buying and selling goods or services between third countries, with no passive income flows subject to withholding tax.
Simple wealth holding
Holding international assets (equity stakes, bank accounts, investments) where tax treaties are not needed.
International consulting and services
Consultants and service providers operating exclusively internationally, using the AC as a billing structure with no taxation.
International e-commerce
Online commerce platforms targeting markets outside Mauritius. Access to international payment gateways (Stripe, PayPal).
Dormant companies
Structures intended to hold assets with no intensive operating activity, with minimal maintenance cost.
Budget-constrained startups
Entrepreneurs wanting a low-cost international structure, with the possibility of converting to a GBC if the activity grows.
Incorporation process
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Selecting the registered agent
Choice of an FSC-licensed management company to act as registered agent. It will be the point of contact with the FSC and will ensure compliance with regulatory obligations.
-
KYC due diligence
Collection and verification of documents: certified passports, proof of address, bank references, description of activities and identification of ultimate beneficial owners (UBOs).
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Incorporation and FSC licence
Filing of the constitutive documents with the Registrar of Companies and application for the Authorised Company Licence with the FSC. Accelerated procedure compared with the GBC.
-
Becoming operational
Opening of the multi-currency bank account, setting up the registered office and launch of international commercial activities.
Indicative timelines
| Phase | Estimated duration |
|---|---|
| Document collection and KYC | 3 to 7 days |
| Incorporation and FSC licence | 5 to 10 business days |
| Bank account opening | 2 to 4 weeks |
| Total (excluding bank account) | 1 to 2 weeks |
Incorporation and maintenance costs
| Expense item | Indicative amount (USD) |
|---|---|
| Incorporation fees (one-off) | 800 – 1,500 |
| Annual FSC licence | 250 – 500 |
| Registered agent (annual) | 800 – 1,500 |
| Accounting | 500 – 1,500 |
| Registered office | 300 – 800 |
| Total annual budget | 1,500 – 3,000+ |
For a full comparison of costs between structures, see our detailed costs guide.
Compliance obligations
Although obligations are lighter than for the GBC, the AC must comply with a set of rules to maintain its FSC licence:
- Record keeping: adequate accounting records enabling transactions to be traced, kept with the registered agent
- Annual Return: annual filing with the Registrar of Companies
- Licence renewal: annual payment of FSC licence fees
- AML/CFT compliance: compliance with anti-money laundering obligations under FIAMLA 2002 and FATF recommendations
- Notification of changes: informing the FSC and the Registrar of any significant change (directors, shareholders, activities, address)
- Common Reporting Standard (CRS): automatic exchange of tax information with more than 100 partner jurisdictions
- Register of beneficial owners: declaration and updating of UBOs with the FSC
Conversion possible: if your needs evolve and you need access to tax treaties, it is possible to convert an AC into a GBC. The process takes 4 to 8 weeks and requires meeting the GBC's substance requirements. See our GBC vs AC comparison guide for more details.
The information presented is provided for guidance only and does not constitute legal or tax advice. Mauritian legislation changes regularly. We recommend consulting a qualified professional for any decision relating to setting up an Authorised Company.